Accounting Analysis and Valuation: Private and Public sector

1- Using the method of comparable, perform a valuation of Apple Inc- (AAPL)- Based on your valuation, what trading strategy would you

recommend? Justify your decision-


A- Use the financial database WRDS to collet flrm’s accounting information and stock prices-

B- Use the following comparable firms: Microsoft Corp (MSFT) and IBM Corporation (IBM)

C- Calculate the following comparison: price – earnings ratio (PIE), The price – to – book ratio (P18), and the pr ice-to- sales ratio (PIS)

D- Use data from the last five years available (e-g- 2013 – 2017)

2- Discuss the merits and limitations of using the method of comparable as valuation methods-



Sample Solution